Huntsman (NYSE:HUN) & Chr. Hansen Holding A/S (OTCMKTS:CHYHY) Head-To-Head Analysis

Huntsman (NYSE:HUN) and Chr. Hansen Holding A/S (OTCMKTS:CHYHY) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Huntsman and Chr. Hansen Holding A/S, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntsman	3	10	1	1	2.00
Chr. Hansen Holding A/S	0	0	0	0	0.00

Huntsman currently has a consensus target price of $12.83, indicating a potential upside of 26.59%. Given Huntsman’s stronger consensus rating and higher possible upside, analysts plainly believe Huntsman is more favorable than Chr. Hansen Holding A/S.

Earnings and Valuation

This table compares Huntsman and Chr. Hansen Holding A/S”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntsman	$5.68 billion	0.31	-$284.00 million	($1.04)	-9.75
Chr. Hansen Holding A/S	N/A	N/A	N/A	$0.51	38.78

Chr. Hansen Holding A/S has lower revenue, but higher earnings than Huntsman. Huntsman is trading at a lower price-to-earnings ratio than Chr. Hansen Holding A/S, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Huntsman and Chr. Hansen Holding A/S’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntsman	-3.05%	-3.49%	-1.45%
Chr. Hansen Holding A/S	N/A	N/A	N/A

Institutional & Insider Ownership

84.8% of Huntsman shares are held by institutional investors. Comparatively, 0.0% of Chr. Hansen Holding A/S shares are held by institutional investors. 6.8% of Huntsman shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Huntsman pays an annual dividend of $0.35 per share and has a dividend yield of 3.5%. Chr. Hansen Holding A/S pays an annual dividend of $0.16 per share and has a dividend yield of 0.8%. Huntsman pays out -33.7% of its earnings in the form of a dividend. Chr. Hansen Holding A/S pays out 32.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Huntsman has increased its dividend for 4 consecutive years. Huntsman is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Huntsman beats Chr. Hansen Holding A/S on 10 of the 14 factors compared between the two stocks.

About Huntsman

Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products. The Performance Products segment manufactures amines, such as polyetheramines, ethyleneamines, DGA Agent, JEFFCAT catalysts, and E-GRADE specialty amines and carbonates; and maleic anhydrides. The Advanced Materials segment offers epoxy, phenoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; and thermoset resins, curing and toughening agents, and carbon nanomaterials. The company provides pre-and post-sales technical service support to customers. Its products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, packaging, coatings and construction, power generation, and refining, as well as serves the elastomers, insulation, footwear, furniture, industrial, oil and gas, liquid natural gas transport, printed circuit boards, consumer, appliances, electrical power transmission and distribution, recreational sports equipment, and medical appliances markets. The company sells its products through a network of distributors and agents. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.

About Chr. Hansen Holding A/S

Chr. Hansen Holding A/S, a bioscience company, develops natural ingredient solutions for the food, nutritional, pharmaceutical, and agricultural industries in Europe, the Middle East, Africa, North America, Latin America, and the Asia Pacific. The company operates through Food Cultures & Enzymes, and Health & Nutrition segments. The Food Cultures & Enzymes segment produces and sells various cultures, enzymes, and probiotic products that determine the taste, flavor, texture, shelf life, nutritional value, and health benefits of various consumer products in the food industry, primarily in the dairy industry. The Health & Nutrition segment produces and sells products for the dietary supplement, over-the-counter pharmaceutical, infant formula, animal feed, and plant protection industries. It has a strategic collaboration with UPL Ltd. to develop and commercialize microbial-based bio solutions for sustainable agriculture. The company was founded in 1843 and is headquartered in Hørsholm, Denmark. As of January 29, 2024, Chr. Hansen Holding A/S operates as a subsidiary of Novozymes A/S.